Read the following passage and answer the questions given below it.
Life is full of risks and accidents. People are at risk for getting injured when playing sports, riding in a car, or living in a house. Risk is uncertainty about a situation’s outcome. Insurance is an arrangement between an individual (insured) and an insurer (insurance company) to protect the individual against risk. Insurance plays a large role in most individual’s financial management plans. The purpose of insurance is to help individuals limit their financial losses when an accident occurs. It helps the individual to be prepared for the unexpected. 
To purchase insurance, consumers purchase a policy. A policy is a contract between the individual and the insurer specifying the terms of the insurance arrangements. A policyholder is the consumer who purchased the policy. The policy will state the premium and deductible amounts. A premium is the fee paid to the insurer to be covered under the specified terms. A deductible is the amount paid out of pocket by the policy holder for the initial portion of a loss before the insurance coverage begins. The amount of a premium or a deductible will vary depending on the type of insurance and the terms of the policy.
Q. Which of the following is the policyholder?
  • a)
    The insured
  • b)
    The insurer
  • c)
    The insurance company
  • d)
    None of the above
Correct answer is option 'A'. Can you explain this answer?
Related Test: SSC CHSL Mock Test -11

SSC Question

By SOURAV KUMAR · Apr 26, 2020 ·SSC
2 Answers
Sameer Saifi answered Apr 26, 2020
The insured in the meaning of Policyholder

Knowledge Hub answered Apr 26, 2020
The passage states that the policyholder is the consumer or the 'insured'. The insurer would be the insurance company.
Therefore, the correct answer is option 1.

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